When you buy a new policy, there is usually a requirement that the person named as beneficiary have an “insurable interest” in the life of the insured.

A spouse or relative or a business partner would usually qualify, but designating other people who are not relatives may require you to offer an explanation or reason why this insurance is needed.

Once a policy has been issued and is in force, you can change the name of the beneficiary to anyone you want to designate as your beneficiary.